Porgera gold mine

It is also a low cost producer, producing per ounce of gold at a price lower than most other mining companies do.

Having a life of 30 million ounces, Porgera is special to Barrick Gold Corporation.

Barrick Gold Corporation is the 49 per cent shareholder in the New Porgera Limited and will be the operator of the giant Porgera Mine.

Loop PNG sat down with the President and CEO of Barrick Corporation, Mark Bristow in an exclusive interview following the granting of SML 13 to New Porgera Limited.

President and Chief Executive Officer of Barrick Gold Corporation, Mark Bristow, met with Prime Minister James Marape on Monday, July 17, 2023, to discuss recent progress and status of the matters remaining to be completed in anticipation of the reopening of Porgera Mine.

BNL, in a press statement, has clarified that these advertisements have not been authorized or approved by the company. BNL stated it is the only party responsible for sourcing and awarding goods and services contracts for the Porgera Gold Mine and strictly adheres to Barrick's global Procurement Standards and Code of Business Conduct and Ethics.

BNL stated that the restart of the Porgera Gold Mine is subject to certain conditions and as such, has not yet advertised or requested expressions of interest for long-term contracts.

He said the Government did not have everyday control over IRC’s work IRC had made assessments and had been in conflict with Barrick over their assessment criteria.

“Barrick has asked some fundamental questions, especially on the IRC’s definition of ‘taxable stripping’, in as far as resource harvest is concerned,” Marape said.

“Barrick is of the view that the current ‘taxable stripping’ definition is not consistent with practice and law, hence the prolonged dispute, so we had to intervene.

Prime Minister James Marape said it was a “milestone achievement” towards reopening of the Porgera mine, which has been closed since 2019.

Porgera Mine is currently into its third year of Care & Maintenance and restart plans is forthcoming, with the full execution of the Shareholders Agreement by Mineral Resource deal sealed.

He said the Marape-led Government is bold and decisive in negotiating a new deal for the country and is proud to say that Enga Province has supported those efforts. 

Sir Ipatas made this statement after the Enga Provincial Executive Council (PEC) met over the weekend to endorse the new project framework proposed for the mine.    

The State of Papua New Guinea and Barrick Niugini Limited today formally signed the Framework Agreement at Government House paving the way for a new partnership with BNL.

Under the framework agreement the ownership of the Porgera Gold Mine will be held in a new Joint Venture company with PNG to hold a 51% stake and BNL with 49%.

The Framework Agreement also sets the foundation for operations arrangements, and benefit split

Under the new deal BNL will finance the start-up of the mine and remain the operator.

Effective Friday 17 July, electrical power to Porgera communities will only be supplied between the hours of 6:00 pm to 6:00 am daily, until further notice.

BNL recognises this is a significant inconvenience to all community members, but regrettably the Company has no other option than to continue to reduce costs in light of the Government decision not to extend the Porgera Special Mining Lease, which forced the suspension of operations, and the consequent loss of operating revenue for the Company.

Prime Minister James Marape says this assurance has been made to stakeholders in the mining and petroleum sectors.

The Prime Ministers revealed this when announcing the non-renewal of the Porgera Gold Mine Special Mining Lease.

Marape said the announcement of the non-renewal of the SML should not scare investors and stakeholders in the mining and petroleum sectors.  

PLOA Negotiation Team Chairman, Maso Mangape, says the decision announced by the Prime Minister, James Marape, was made on ill advise.

Mangape, told this newsroom that the announcement came as a surprise to the landowners, claiming several letters to the Government to discuss the future of the mine were not acknowledged.

Mangape said the uncertainty clouding the future of the mine has heightened after Barricks announcement to temporarily suspend operations.